Jacobs Solutions (J) Q3 2026 earnings summary

Executive summary

• Gross revenue rose 34.5% year-over-year to $4.1 billion, with adjusted net revenue up 8.3% to $2.4 billion.

• Adjusted EPS increased 13.6% year-over-year to $1.84, with adjusted EBITDA up 16.7% to $367 million.

• Record backlog reached $28.9 billion, up 27.3% year-over-year, with a trailing twelve-month book-to-bill ratio of 1.4x.

• FY26 guidance was raised for the third consecutive quarter, reflecting strong business momentum.

• Completed PA Consulting acquisition, resulting in full ownership and integration costs.

Financial highlights

• GAAP net earnings were $137.4 million, down from $181.2 million in Q3 2025, due to a temporarily higher tax rate from the PA acquisition.

• Adjusted net earnings from continuing operations were $219.3 million, up from $194.8 million year-over-year.

• Adjusted EBITDA margin improved to 15.2% from 14.1% year-over-year.

• Free cash flow for Q3 was $541 million, with $614 million in share repurchases year-to-date.

• Book-to-bill ratio was 1.5x for Q3 and 1.4x trailing twelve months.

Outlook and guidance

• FY26 adjusted net revenue growth guidance raised to 9.5%–10.0% year-over-year.

• Adjusted EBITDA margin expected at 14.7%–14.8%, with adjusted EPS forecasted at $7.20–$7.30.

• Adjusted free cash flow margin projected at approximately 8%.

• Q4 adjusted EBITDA margin expected at ~16%, with net revenue growth of ~14% year-over-year.

• Management expects continued impact from PA Consulting integration costs and related compensation expenses.